Private fairness backers of Spanish telecoms group MasOrange discover IPO | USAEMALL.com

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The private equity backers of Spanish telecoms group MasOrange are exploring an initial public offering of the company next year, as buyout groups seek to cash out some of their assets.

MasOrange, the largest mobile network operator in Spain, was formed in a near-€20bn merger agreed in 2022 between France-owned Orange España and private equity-backed MásMóvil. Under the terms of the deal, either side can trigger an IPO after a two-year lock-up period that expires in April 2026. 

According to three people familiar with the details, MásMóvil’s owners — KKR, Cinven and Providence Equity Partners — are in preliminary discussions about options for the business that could include an IPO in Spain next year.

The people added that no final decisions had been made.

A listing for MasOrange would provide some momentum to Europe’s IPO market, which has been slow to rebound from a post-pandemic drought forcing buyout groups to sit on a record number of unsold assets.

If an IPO is triggered, Orange has the option to buy a controlling stake in MasOrange at the IPO price, giving KKR, Cinven and Providence Equity Partners the chance to exit. 

Kester Mann, director of consumer and connectivity at telecoms consultancy CCS Insight, said that given company performance was on track, “investors may feel this is the opportune moment to cash in on MasOrange”. 

Orange said that the shareholder agreement conferred the right to trigger an IPO after April 2026 “if the conditions were right”. MásMóvil, MasOrange, KKR and Cinven declined to comment. Providence did not respond to an immediate request for comment.

MásMóvil was bought by KKR, Cinven and Providence in 2020 at a €5bn valuation when it was Spain’s fourth-largest telecoms operator. 

Separately, MasOrange is seeking to sell a stake in a new fibre optic company launched in January in partnership with Vodafone Spain. 

The company plans to create a network covering more than 12mn premises. MasOrange will own a 50 per cent stake; Vodafone Spain 10 per cent and a new financial investor 40 per cent. The deal is expected to close in the first half of 2025.